Consolidating credit good bad

But on the other hand, you’re probably going to end up carrying a very high balance on the new card, which is not ideal.In a perfect world, you shouldn’t be using more than 30% of your available credit on point in time.

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It heavily influences a whopping 30% of your credit score, and if you have several maxed-out cards, yours is probably sky-high.

But keep in mind that only the balances on revolving lines of credit are factored into your credit utilization ratio; by moving your credit card debt onto an installment loan (the personal loan), you’re shifting it in such a way that it will have a minimal impact on your credit. If you choose to consolidate with a 0% APR card via a balance transfer, the picture is a little more complicated.

If you’re not sure how consolidating your credit card debt will affect your score, take a look at the details below – the Nerds will tell you everything you need to know!